How to start saving successfully

Around one in three millennials is stressed about how much (or rather how little) money they have saved. At the same time, however, the number of young people successfully saving (with more than $15,000 dollars accrued) has risen significantly in the past few years, according to a Bank of America survey. So what are they doing right, and how can you join the successful savers club?

Here at Mind the Gap, we talked to more than 200 women about their money and financial situation. Based on their input and knowledge, we gleaned some useful tips about how to optimise your savings and ensure you meet those long-term goals.

In Germany, particular import is placed on health, pension and elderly care insurance.

Negotiate a higher salary.

By now, you’ve accrued vast experience, which can be leveraged in negotiations.

IN YOUR FIFTIES:

Aim to have saved five times your annual salary.

Define what you need to save for your retirement.

Envisioning a life of leisure is actually a lot of fun!

Take time to plan your medical care and insurance.

As you age, such insurances become more important, and a mistake can be hugely costly.

Be a leader at

Put that experience to use in showing others the way, helping them learn from your mistakes and successes. Women in particular need such role models.

FROM 60-65:

Aim to have saved eight times your annual salary.

Plan your retirement strategy.

How will you spend your time and what will your expenses be?

Check your budget and adjust it against your retirements plans and goals.

Now look at your plan: Can you afford it?

Enjoy your freedom and free time.

Reap the rewards of your hard work and foresight.

SUMMARY:

We keep talking about compound interest and why it’s best to start saving as early as possible. That’s because each year you earn money on the interest you earned previously, so your balance doesn’t just grow, it grows at an increasing rate. Here’s an example:

If you put away €1 at age 20, it will be worth €21 by the time you reach 65

If you wait until you are 30 to invest that same €1, it will be worth €10.68

If you wait until you are 40 to invest that same €1, it will be worth €5.42

If you wait until you are 50 to invest that same €1, you’ll get a measly €2.76